Written By Mikel Hubbard
Looking to purchase or sell your vacation rental?
Every home sells eventually, and vacation rentals are no different. What do you need to prepare for that day you sell yours? Or - are you thinking about buying an existing Airbnb and want to know how to walk through the process? We’ve got you six top tips from people who have been through the process.
Here are the six things you need to know about buying or selling an existing Airbnb property.
1. You can’t buy or sell the existing property’s listing profile on Airbnb.
Airbnb listings are about the person, not the property. That means if you buy someone’s Airbnb, you have to start over on Airbnb. You will have no reviews - and if you’re selling, you will need to cancel all reservations after the close date.
Sounds harsh? It is. To make the transition, call Airbnb and have them help you with the process. They will be able to cancel everyone’s booking without penalties and help guests rebook with the new host. We recommend offering a small discount of 10%-15% for their troubles.
That also means if you’re buying, you should take note of all listing details and ask for copies or take screen shots of all the home’s photos and text so you can use it to set up your account (if you want them). You will also want home guides, welcome guides and any other documentation that is provided to guests (ideally in a Word format or as a file you can alter).
READ MORE: HOTTEST MARKETS TO PURCHASE AN INVESTMENT PROPERTY RIGHT NOW
2. Build in a transition period between you and the other party.
As soon as the property closes, the new owner will be responsible for all bookings. That means if the seller is taking furniture with them or shutting off utilities, the buyer needs to be prepared. We recommend blocking off a few days to create a buffer between the old owner and new owner to make this transition as smooth as possible. And call those utilities early.
READ MORE: HOW TO AIRBNB WITHOUT OWNING A HOUSE
3. Talk to everyone who works at the house.
We recommend interviewing any current cleaners, landscapers, managers, etc. before taking over the house. They may have been great for the old owner but aren’t necessarily going to be a good fit for the new one. They may also want to take this opportunity to increase their prices or make a clean break and both sides should be prepared if that happens. They will also be able to tell a new owner what’s working, what’s not working and what the current owner SHOULD repair but has been ignoring (another thing you’ll want to get ahead of if you’re the seller OR buyer).
READ MORE: FIVE MOST IMPORTANT PEOPLE TO HELP MANAGE YOUR AIRBNB
4. Talk to the neighbors.
Make your neighbors aware of the transition and if you’re buying, get introduced right away. A good neighbor will keep an eye on your house for you. A bad neighbor will find every reason to try to shut you down. Either way, you’re going to want them on your side… or know what you’re up against.
5. Try before you buy.
As a buyer, you should spend at least one night in the house. Owners should provide this for free, but regardless, it’s essential to understanding what you’re getting into.
6. The permit.
If your county requires a permit, make sure that permit transfers when the house does. You don’t want to liable for someone else’s occupancy taxes nor do you want to find out that the county won’t issue you the same permit upon taking over the property.
Ever been through the process of buying or selling an Airbnb? We want to hear! Fill up those comments!
READ MORE: WHAT FEES DOES AIRBNB CHARGE HOSTS?
BONUS TIP: Diversify your income.
Congrats on your new purchase!!! One key piece of advice we give to for all hosts, both new and experienced - diversify where your money comes in from, so you’re not just relying on bookings. Looking to add instant amenities and concierge services to your new short-term rental? You can get connected immediately with local service providers in over 50 cities by starting a free Host Co store - and add your own products and services (late check-outs, in-home items)!
Get Started
Mikel Hubbard
